H.R.A. Figureq require for Income Tax

This query is : Resolved

Rajkumar Maheshwari (Querist)
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20 March 2008 a person living in Indore. In Accounting Year 2007-2008 total Salary is Rs. 253000/- (Only Salary). he is not getting house rent allowance from his co.
He is paying Rs. 2700/- per month for House Rent. Total Rent in Accounting Year Rs. 32400/-. I want to know that what will the figure of H.R.A. for Deduction in Income Tax. & how to calculate it. , please help.....

KAAPIL

KAAPIL (Expert)
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20 March 2008 Salary for purpose of HRA
(a) Basic Salary
(b) DA (only if it is for retirement benefits)
(c) Commission (fixed percentage of turnover)

Least of the following
(i) Allowance actually received : Rs.0
(ii) Rent Paid - 10% of salary
32400 - 25300 = Rs.7100
(iii) 40% of salary = Rs.101200

In this case the least figure is Rs.0.

Hence he will not get deduction as he does not get it.

He can claim deduction u/s 80GG .

KAAPIL

KAAPIL (Expert)
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20 March 2008 Section 80 GG

Least of the following

(i) Rent paid - 10% of Adjusted GTI
32400-25300=7100

(ii) 25% of AGTI =Rs.63250

(iii) Rs.2000 per month = Rs.24000 per year

He will get Rs.7100 as deduction.

Good Luck.

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